Undertrading vs Overtrading.. your thoughts?

[VicBee]

From my newbie experience I have more difficulties sizing than counting my stock trades. With 2020 behind, I had gotten used to big sizes with big returns. Then 2021 came along and I took a couple nasty falls that had me reconsider size and returns. Less 1000s, more 100s....

 

[IamTheCasino]

Nevermind. I reviewed the videos I recall, and they are too disturbing, even for PM.

dont be shy

 

[murray t turtle]

If you have been undertrading, you will most likely continue to undertrade till the end of time
If you have been overtrading, you will most likely .............................................................

This is due to the subconscious mind which has already been programmed when you were a
small kid.

%%
Good points.
BUT overtrading counter trend[ like shorting or inverse ETFs] in an uptrending bull market will give you some price shocks + margin calls. Wake calls with no coffee needed\LOL
That's also why you dont see too many bear funds last long\some bear funds do last long, cant think of any @ moment...............................................................

 

[KCalhoun]

Agree with all your points. It's more comfortable, safer as can diversify more, keeps one interested as holding just a couple of positions is boring.
However the last point, there is another way. If one has done some fundamental homework, when it goes down buy more. A little like @volpri mentions, IN THE RIGHT CIRCUMSTANCES, scaling down to get a better entry price is worth considering. This is where trading small size works, one can take incremental small bites at better prices.

Right... eg I bought UVXY Friday at 26.8 on pivot bc I recognized a good setup.

Naied it, sold starting 34.8

 

[SimpleMeLike]

I think that many traders, out of a concern for overtrading, tend to undertrade instead. Putting on too much size, too few trades.

I'd much rather do 10 100-share trades than 1 1000-share trade, for example.

Worth thinking about... ideas?

Like poker, you grind. You don't just go all in on perfect hands. You play frequently when it looks like you've got an edge.

Hello KCalhoun,

Great conversation.

If a trader trading window is from 8am to 11am Est, some traders do the following:

A. Take all trade setups from 8am to 11am.
B. Stop trading when max profit/loss target is hit.

I prefer A.

I do not believe in overtrading and undertrading anymore. I would like to think and act like the Casino....... 1. Understand and know my Edge (even its 51% win rate) 2.Make all the money I possibly can.

 

[Handle123]

All my trading models get in early, so they geared to averaging down with same size, so on 3-4 add ons, risk is less than on first entry.

Had to learn hard way, if doing well, don't have max profit for the day but if have 3 losses, that instrument is done for the day.

 

[easymon1]

Right... eg I bought UVXY Friday at 26.8 on pivot bc I recognized a good setup.

Naied it, sold starting 34.8

View attachment 263798

Oh Hell Yeah!
ThaT is one hell of an entry.
You pulled a change-up? instead of break above prior High, looks to be a break above the prior lo?
Whatever that setup is, I'm all ears.

How many charts were you looking at when that happened?
Were you moderating your trading room too?

And the Icing on the cake.

7/19 Today's Watchlist: UVXY TZA SQQQ SDOW SPXS
Discussion in 'ETFs' started by KCalhoun, Today at 6:58 AM.

 

[murray t turtle]

I was with a firm many years ago where trailing stops were absolutely forbidden. For good reason. I will never use one again.

%%
Sounds like the firm had good reasons for NOT allowing trailing stops.
Plenty of good reasons for that, including;
[1] less commissions
[2] trailing stops WORK well with good uptrends
[3]takes a very good trend to make a trailing stop wok well with shorts \inverse ETfs+ many inverse trends just are not that SMOOTH
[4]profit targets can work better on stuff that spikes up + down much.

 

[KCalhoun]

Oh Hell Yeah!
ThaT is one hell of an entry.
You pulled a change-up? instead of break above prior High, looks to be a break above the prior lo?
Whatever that setup is, I'm all ears.

How many charts were you looking at when that happened?
Were you moderating your trading room too?

View attachment 263809

And the Icing on the cake.

7/19 Today's Watchlist: UVXY TZA SQQQ SDOW SPXS
Discussion in 'ETFs' started by KCalhoun, Today at 6:58 AM.

Thanks.... unlike stocks, I trade UVXY by buying low, selling high into VIX spike. Big run today. I sold most of it and other inverses into today's breakouts.

Will scale in tomorrow if they go up.
UVXY SDOW SQQQ SPXS TZA

Yes was running chatroom, subscribers were thrilled, I called it live before the big run

 

[murray t turtle]

Thanks.... unlike stocks, I trade UVXY by buying low, selling high into VIX spike. Big run today. I sold most of it and other inverses into today's breakouts.

Will scale in tomorrow if they go up.
UVXY SDOW SQQQ SPXS TZA

Yes was running chatroom, subscribers were thrilled, I called it live before the big run

%%
Looks like SQQQ SPXS, sds had a good run today+ good exits. I wanted to buy some for swings late today\but figured Wednesday or later =better for me. Most likely a down week for QQQ, even though its above 50dma.......